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Overall, the Lisbon Strategy has had a positive impact on the EU even though its main targets (i.e. 70% employment rate, and 3% of GDP spent on R&D) will not be reached. The EU employment rate reached 66% in 2008 (from 62% in 2000) before it dropped back again as a result of the crisis. However the EU has failed to close the productivity growth gap with leading industrialised countries: total R&D expenditure in the EU expressed as a percentage of GDP only improved marginally (from 1.82% in 2000 to 1.9% in 2008).
Background Information for the Informal European Council, 11 February 2010
1. Recovering from the crisis 2. Confronting global challenges 3. Our aim: sustainable growth and jobs 4. Growth based on knowledge and innovation 5. An inclusive high-employment society 6. Green growth: a sustainable and competitive economy
In its broad-based innovation strategy for the EU, the importance of improving knowledge transfer between public research institutions and third parties, including industry and civilsociety organisations was identified by the Commission as one of ten key areas for action. This Communication responds to this need and it presents a number of orientations for Member States.
The European Union (EU) 6th Framework Programme (2000-2006) funded 458 marine research projects worth more than €848 million in grant-aid. 124 marine research projects (grant-aid €297 million) funded under the FP7 (2007 – 2013) to date. Although research effort is significant, not all of the new knowledge has had the expected impact, perhaps because of the “well-known obstacles impeding knowledge transfer between research institutions and third parties"
The main concern related to R&D&I aid to undertakings is that rival undertakings’ dynamic incentives to invest are distorted and possibly reduced. When an undertaking receives aid, this generally strengthens its position on the market and reduces the return on investment for other undertakings. When the reduction is significant enough, it is possible that rivals will cut back on their R&D&I activity. In addition, when the aid results in a soft budget constraint for the beneficiary, it may also reduce the incentive to innovate at the level of the beneficiary. Furthermore, the aid can support inefficient undertakings or enable the beneficiary to enhance exclusionary practices or market power.